Zynex Inc (NASDAQ:ZYXI), a developer of non-invasive medical devices, is laying the foundation for a return to growth following a pivotal second quarter marked by leadership changes, operational streamlining, and a key FDA submission for its next-generation pulse oximeter.
The company appointed industry veteran Steven Dyson as CEO in Q2, a move founder Thomas Sandgaard called “transformational” for the Colorado-based firm.
“Steven brings deep expertise and a proven track record in the medical sector,” Sandgaard said. “His leadership will be instrumental as we refocus our business strategy toward a more optimized payer mix and work to return Zynex to a strong growth trajectory.”
Alongside the leadership transition, Zynex submitted its NiCO laser pulse oximeter to the US Food and Drug Administration—a move the company describes as a big milestone in advancing patient monitoring technology.
“This submission marks a historic milestone in the evolution of pulse oximetry and a major breakthrough in our mission to improve the quality of care and patient outcomes,” Sandgaard said.
Despite reporting a year-over-year decline in revenue to $22.3 million in the quarter ended June 30, the company said it made substantial progress toward efficiency, including a restructuring of its sales force and internal operations. These efforts are expected to yield approximately $40 million in annualized cost savings, with the bulk taking effect in the second half of 2025.
Zynex reiterated its long-term mission to support patients with opioid-free pain relief solutions and emphasized that the current operational reset is designed to lay the groundwork for improved cash flow and future expansion.
“We are confident that our efforts to reduce costs and redirect our sales force will be pivotal to improved cash flow and create a foundation for continuing to grow into the huge demand for our products,” Sandgaard added.
While the company posted a net loss of $20 million for the quarter, including a non-cash deferred tax adjustment, cash collections totaled $26.1 million and the company exited the quarter with $17.5 million in cash.
Zynex temporarily suspended financial guidance for the third quarter as Dyson takes the reins and leads a review of forecasting practices. The company plans to update investors on future guidance in the coming quarters.